07-17-2022 icon

FPA endorses trading platforms management, “Crypto Rule Book”

By Lucy Adegbe

The Financial Planning Association of Australia (FPA) has made moves to demonstrate its consent for the proposed “crypto rule book” and has summoned policies on trading platforms and not digital properties. 

In May this year, the Australian Law Reform Council (ALRC) formulated a book method of crypto legal management that highlighted various edited adherence rules for national cryptocurrency companies to abide by. 

Reviews of this rule book strategy popped up on submission to the treasury department, urging that crypto trading platforms require policies that are influenced by the present monetary service administration rather than an independent system. 

According to the FPA’s chief of protocol and creation, Ben Marshan, building a separate framework of the “crypto rule book” would “create an alternate, duplicate regulatory regime to regulate what at the core is the purchase and holding of a financial asset to either retail or wholesale investors.”

Also, “it would require existing financial service licenses to apply for and hold a separate type of license, adding to cost and regulatory duplication.”

Marshan further underlined the necessity to draw out customer insurance for crypto nationals, noting that subordinate providers are the best fit to handle this. 

Ryan Parsons, the founder of Swyftx trade, mentioned to Cointelegraph that his company would prefer for “crypto platforms to operate within the existing financial services licensing framework, albeit in a way that accounts for the unique characteristics of digital assets.”